Quint Manufacturing Uses an Activity-Based Costing System The Following Costs Are Reported

Quint Manufacturing uses an activity-based costing system. The company produces Model 1 and Model 2. Information relating to the two products is as follows:
$\begin{array}{lrr}&\underline{\text { Model 1}}&\underline{\text {Model 2}}\\\text { Units produced } & 24,000 & 30,000 \\\text { Machine hours } & 7,500 & 8,500 \\\text { Direct labour hours } & 8,000 & 12,000 \\\text { Material handling (number of moves) } & 4,000 & 6,000 \\\text { Setups } & 5,000 & 7,000\end{array}$
The following costs are reported:
$$\begin{array} { l r } \text { Materal handling } & \text { 40,000 } \\\text { Labour-related overhead } & 120,000 \\\text { Setugs } & \text { 60,000 }\end{array}$$
-Refer to the figure.What are the setup costs assigned to Model 2?

A) $25,000
B) $28,000
C) $35,000
D) $36,000

Correct Answer:

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